Press Release

Vestwell Launches Two Products for 401(k) Third Party Administrators

Issued by Vestwell

Sept. 12, 2022

Vestwell Flex and TPA Portal provide exceptional recordkeeping products and enable outside servicers to vastly scale their client business

NEW YORK -- Vestwell, the small business retirement plan provider and individual savings platform, today announced two major Third Party Administrator ("TPA") product launches?a TPA partner product, Vestwell Flex, and a TPA portal. Vestwell Flex provides small businesses and retirement plan advisors with an exceptional recordkeeping product that combines the ease of the Vestwell platform with the seamless service of industry-leading TPA partners. In tandem with Flex, the portal allows TPAs to efficiently scale their practices in the small and mid-size 401(k) retirement plan market.

"Vestwell recently piloted two new TPA programs to meet the unparalleled demands of administrators and retirement plan advisors. Administrators, frustrated with operational inefficiencies that prevented growth, needed a modern solution. We also saw demand from retirement plan advisors to use Vestwell as a fully unbundled platform, which led us to launch Vestwell Flex." said Richard Tatum, President of Retirement Services at Vestwell. "TPAs are a critical part of the retirement industry, helping service businesses and savers. But, often legacy technology holds back the level of engagement possible. These new solutions allow TPAs to expand growth, engagement, and service at a rapid scale."

TPAs are critical for small businesses as they often need hands-on support and bespoke retirement plan designs. As a result, nearly 50 percent of small plan retirement plans below $10 million in assets use an outside TPA. However, for many small businesses and financial advisors, the process to find and vet a TPA partner can be time-consuming and the recordkeeping systems that work well with TPAs can be outdated, clunky, and maintain significant proprietary fund requirements.

Vestwell Flex streamlines this process by bundling pricing and agreements while unbundling TPA services, which are provided by industry leaders including Economic Group Pension Services (EGPS), FuturePlan, MAP Retirement, and TRA. These partners provide advisors with hands-on service for complex designs and servicing needs to meet the demands of their small business clients. The pilot program saw rapid adoption from advisors utilizing Vestwell Flex, which has significantly increased their ability to scale their businesses through the styles of plans they offer.

Under Vestwell Flex, Vestwell provides saver-level administration services including eligibility calculations, distributions, loan approvals, notice, and electronic disclosure delivery. TPA partners handle plan design and consultation, as well as provide a streamlined 5500 sign-off process. Advisors and their small business clients select from a set of TPAs based on their needs.

"As one of Vestwell's preferred TPA partners, we're pleased to be part of this new and creative product solution," said Kasey Price, President of FuturePlan. "Together, we're providing advisors with a time-saving solution that allows them the opportunity to scale their practice ? and meet their clients evolving business needs."

Vestwell's TPA Portal supports plan design and setup, as well as key insights needed to monitor and continue to service a plan throughout its lifecycle. Vestwell's TPA partners benefit from joining the portal because the modern platform provides a significant opportunity to drive scale and distribution. The portal also provides an enhanced pathway for Vestwell to drive business to its TPA partnerships.

Since launching in 2017, Vestwell has established itself as a leading workplace savings platform for small businesses. Vestwell is adding thousands of retirement plan clients per year, with partnerships with leading advisory firms, payroll providers, and asset managers. The firm is also rapidly expanding in state-sponsored savings programs, where Vestwell draws on expertise as a program manager to help their partners expand their retirement plan footprint as state governments seek to close the retirement gap.

About Vestwell

Vestwell is the modern fintech engine powering savings and investment programs for small businesses and individual savers across the country. We're helping to close the savings gap by offering a flexible, cost-effective, modern solution to save for the critical aspects of life - retirement, education, and healthcare. Vestwell currently powers nearly 25,000 small businesses, over a million savers, and $27 billion in assets in all 50 states. To learn more visit vestwell.com.

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